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Seamless nearshoring - Itera's way


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Seamless nearshoring - Itera's way

  1. 1. Seamless nearshoring<br />Itera’s Way<br />Seamless Nearshoring<br />Page 1<br /> , 1/5/2011<br />
  2. 2. Vice President Global Outsourcing at Itera<br />Vice President, “IT Ukraine” Association<br />Scientific-Methodological Commission on Software Engineering, Ministry of Education and Science of Ukraine<br />Co-founder of SoftServe, one of the largest software house in Eastern Europe with1200+ personnel<br />Seamless Nearshoring<br />Page 2<br />Igor Mendzebrovski, VP Global Outsourcing<br /> , 1/5/2011<br />
  3. 3. Premium Nordic IT provider with nearshoring capability<br />Seamless Nearshoring<br />3<br />Seamless Nearshoring: Vision<br />1/5/2011<br />
  4. 4. Seamless Nearshoring<br />Page 4<br /> , 1/5/2011<br />Itera’s Hybrid Model<br />
  5. 5. Seamless Nearshoring<br />Page 5<br /> , 1/5/2011<br />Sourcing for Value vs. Sourcing for Volume<br />Net realized savings ranging from 10% to 40%<br />
  6. 6. Seamless Nearshoring<br />6<br />1/5/2011<br />The “Value” Parameters will give better business flexibility<br />Ukraine<br />Less pool, less spread<br />India<br />Large pool, large spread<br />
  7. 7. Seamless Nearshoring<br />Page 7<br /> , 1/5/2011<br />Client Engagement Options<br />
  8. 8. Seamless Nearshoring<br />Page 8<br /> , 1/5/2011<br />Delivery Framework<br />
  9. 9. Focused on life tested practices<br />Seamless Nearshoring<br />Page 9<br />Quality of Seamless Nearshoring<br />Mandatory project practices are tailored to meet client’s needs<br /> , 1/5/2011<br />
  10. 10. Seamless Nearshoring<br />10<br />1/5/2011<br />Three ways to add business value to IT organization<br />
  11. 11. Local team is extended with nearshore one focused on development and support in a knowledge intensive development environment<br />Unified project framework is established, that facilitates knowledge sharing and collaboration between geographically distributed teams<br />Easy to scale up or down<br />Minimum impact to efficient delivery and timeline due to possible rotation<br />We call it “Hybrid Approach”, it is optimizedfor resource balancing for up- & down-scaling due to the organizational set-up with roles distributed more or less evenly (incl. knowledge sharing) across the shores (more like “staff augmentation” approach)<br />Seamless Nearshoring<br />11<br />1/5/2011<br />Goal #1: Maximizing sourcing flexibility<br />Product 1<br />Product 2<br />Product m<br />Product n<br />Hybrid (Local / Nearshore) team<br />BA and AD<br />AM and Support<br />
  12. 12. Dedicated nearshore team takes on existing or new product<br />Business and competitive analysis<br />R&D planning and executing<br />Next generation technologies and methodologies<br />Hi-level knowledge sharing (incl. product strategy, road map) is involved<br />Product innovation approach is optimized for faster time-to-market within agile management / communicationenvironment for relatively localized or stand-alone products or systems<br />Seamless Nearshoring<br />12<br />1/5/2011<br />Goal #2: Drive innovation and R&D<br />Product 1<br />Product 2<br />Product m<br />Product n<br />Local team<br />Nearshore team<br />BA and consulting<br />R&D and support<br />
  13. 13. Nearshore team backs up local R&D by delivering hours intensive services like: refactoring, technology improvements, extensive QA, etc., – freeing more hours to frontline workers and client intensive developments and services. Competitive advantage is gained through:<br />Strong focus on clients and markets<br />“Pure” R&D front office attracts talents<br />More hours to invest into robust, bug-free products<br />Roles distribution in horizontal functional split is optimized for focused teams and efficient services / product delivery<br />Seamless Nearshoring<br />13<br />1/5/2011<br />Goal #3: Increase customer focus<br />Product 1<br />Product 2<br />Product m<br />Product n<br />Local team<br />BA, R&D, consulting<br />Nearshore team<br />AM, fixing, tuning, etc.<br />
  14. 14. Management Overhead - Caused by more complex, distributed Project Environment<br />Communication Overhead - Caused by Distance, Time and Cultural differences<br />Business Domain and Regulations Expertise - Caused by lack of necessary expertise in Outsourcing Environment<br />Seamless Nearshoring<br />14<br />1/5/2011<br />Best Practices to Answer Outsourcing Challenges<br />
  15. 15. Seamless Nearshoring<br />Page 15<br /> , 1/5/2011<br />Collaboration Approach<br />
  16. 16. Seamless Nearshoring<br />16<br />1/5/2011<br />4 steps to outsourcing partnership include<br />
  17. 17. Seamless Nearshoring<br />Page 17<br />Geographical and cultural proximity<br />2.5 hours<br /> , 1/5/2011<br />
  18. 18. 20+ years global outsourcing player<br />Seamless Nearshoring<br />18<br />Ukraine Nearshoring Destination<br />1/5/2011<br />
  19. 19. Seamless Nearshoring<br />19<br />1/5/2011<br />Geographical and cultural proximity<br />
  20. 20. Seamless Nearshoring<br />20<br />1/5/2011<br />Our Nearshoring Facilities<br />Co-located with Microsoft Ukraine in Kiev<br />Appealing workspace<br />Attracts talented people<br />
  21. 21. Nearshore Development Center (NDC) structure combines Production and G&A<br />Production is services or business lines: Engineering, Operations, QA etc.<br />G&A secures governance, legal, financial and etc. services for ODC<br />Seamless Nearshoring<br />21<br />1/5/2011<br />Itera Ukraine Organizational Structure<br />
  22. 22. Sourcing for Value, not for VolumeMaximizing efficiency instead of capacity only<br />Flexibility of a Hybrid ModelCombine on- / near-shore resources for your best result<br />Best Offshoring PracticesLearn from other’s offshoring outsourcing lessons<br />Do More For LessRemove budget strains & optimize your costs<br />Seamless Nearshoring<br />22<br />1/5/2011<br />Summing Up<br />
  23. 23. Seamless Nearshoring<br />23<br />1/5/2011<br />Looking forward to work with you!<br />We heartily invite you to visit Ukraine<br />